HALO is inching higher despite the broad-market sell-off
Halozyme Therapeutics Inc (NASDAQ:HALO) is gearing up for its fourth-quarter earnings report, due out after the close today, in which the company is expected to post profits of 41 cents per share. HALO is bucking the broader-market selloff ahead of the event, up 0.9% to trade at $33.01 at last check.
The options pits are anticipating a near-term straddle indication post-earnings swing of 11.4%, which is much higher than the average 5% move the stock has made after earnings over the past two years, regardless of direction. A closer look shows that in those last eight reports, HALO had a positive post-earnings reaction after 50%, three of which occurred in 2021.
The stock's typically quiet options pits are seeing triple their usual call volume today. Most of this activity can be attributed to the March 36 call, while new positions are being opened at the June 39 call.
It's worth noting that while short interest has begun to fall off, it still represents 4.6% of the stock's available float. In other words, it would take over six days to buy back these bearish bets, at Halozyme stock's average pace of daily trading.
On the charts, HALO has experienced a volatile last few months, though the $32 level has provided a consistent floor for pullbacks. Year-to-date, the equity is down 17.9%.
